Having established itself as a global travel destination and South East Asia’s tourism capital, Thailand has expanded its service industry sector in line with its strong economic growth and tourism demand for leisure as well as corporate segments making hotel room investment and buying private pool villas in Thailand even more lucrative. From bustling cities like Bangkok to marvelous islands like Phuket, Koh Samui, and Pattaya, Thailand’s welcoming hospitality and culture, colorful nightlife, and gastronomic delights have always attracted plenty of visitors. Its buzzing hotel industry is one of the key factors for Thailand’s popularity as a tourist destination.
Hotel room investment in Thailand can undoubtedly be the smartest decision of your life. Let’s have a look at the advantages you’re assured of when you buy a hotel in Thailand.
HIGH RENTAL INCOME
With the stature of Thailand’s strong inbound tourism figures, the rental yields are attractively high. Unlike the residences where you receive a rental yield monthly, a hotel room investment can generate a higher rental income with frequent check-ins and check-outs of visitors. Interestingly, the rental yields in Thailand are generally stronger than those offered in major Asia Pacific markets like Hongkong, Singapore, and Japan, and also at a lesser price.
Some aspects contribute to the high rental income in Thailand. Here are the major ones:
Nightly ADR (Average Daily Rate)
A nightly ADR (Average Daily Rate) for a hotel room at holiday destinations in Thailand is high with about THB 3,316 ($111) for a night stay in Phuket. In accordance, a stay in Phuket for two people for one week on average costs about THB 42,171 ($1,406).
The extensive selection of hotels in Thailand brings in a lot of flexibility for its visitors. Whether you’re a backpacker with a constricted budget or an extravagant tycoon with a hefty bank balance, there’s room for everyone. While budget hotels can start from as low as THB 300 to 1300, a mid-range hotel could cost about THB 1500 to 3000, luxury resorts charge anywhere between THB 5,000 and 500,000 per night.
Attractive Tourist Visitation Numbers
Thailand remains one of the most visited destinations in the world year after year, with about 39 million visitors annually. This has led to a 4% year-on-year growth, and an average of 9% growth year on year over the last 5 years.
Despite challenging international conditions that have affected international and domestic travel in the past 15 years owing to the global financial crisis, SARS, or the Avian flu epidemic, and of late the Covid-19 pandemic, the accommodation rates, and occupancies in Thailand have bounced back quickly over a shorter period as compared to other countries. This speaks of greater investment stability and an expected trend of resilience that will continue going forward to support the strong demand for hotel acquisition.
Thailand sees millions of visitors all year-round with only Phuket receiving more than 15 million visitors annually. This large inflow of visitors leaves these destinations with the challenging task of accommodating such large numbers. An average of 85,000 rooms on the island cater to these crowds and there is always a demand for more. Hotel investment in Phuket can therefore be extremely rewarding.
All the popular destinations in Thailand are very well-connected internationally. Phuket has an international airport that makes traveling to and from many countries easy. Phuket International Airport has non-stop passenger flights scheduled to 40 destinations in 16 countries including far-flung places like Germany and Australia. It is only a one-and-a-half-hour flight away from Bangkok.
Thailand is pleasantly warm most part of the year making it a favored travel destination all through the year. The average annual temperature in a popular beach destination like Phuket is 27.5 °C (81.5 °F). Although the period from September to October is rainy due to the southwest monsoon, the weather is quite friendly unlike colder climates elsewhere. Thus it remains visitor-friendly even during those months.
A HOLIDAY HOME TO ENJOY
When you make a hotel room investment or buy exclusive pool villas in Thailand, be prepared for huge discounts and attractive offers on your own visits to your property. As an investor with SHKAI, even if we are managing your property on your behalf, we offer complimentary stays at your hotel for about 20 nights a year. Not only that, but you could also experience the superior management of the hotel and enjoy a lot of other complimentary 5-star facilities such as free breakfasts, concierge services, and more.
So along with a fruitful investment venture, you also acquire a holiday home at the hotel and get to experience the good life it offers.
With all these benefits and more, a hotel room property investment in Thailand can be much more lucrative than you imagined. To know more about our ongoing projects of Thailand pool villa property for sale, reach out to our experienced team at SKHAI to help you find the most premium properties with the most attractive deals.